Best Life Insurance Plans to Consider in Singapore
Looking for the best life insurance in Singapore in 2026? You’ve come to the right place.
Life insurance provides a lump sum payout to your loved ones in the event of death or serious illness. It’s designed to protect those who rely on your income—family, dependents, or even your business partners—and ensure they stay financially secure in tough times.
Whether you're a young professional, a new parent, or planning for retirement, use this guide to explore life insurance policies in Singapore from top providers like AIA, Singlife, Manulife, and Income, featuring a whole slew of term insurance, whole life insurance, and endowment plan options tailored to your needs.
Life insurance provides a lump sum payout to your loved ones in the event of death or serious illness. It’s designed to protect those who rely on your income—family, dependents, or even your business partners—and ensure they stay financially secure in tough times.
Whether you're a young professional, a new parent, or planning for retirement, use this guide to explore life insurance policies in Singapore from top providers like AIA, Singlife, Manulife, and Income, featuring a whole slew of term insurance, whole life insurance, and endowment plan options tailored to your needs.
Disclaimer: This article is meant for educational purposes only, and not serve as professional financial advice. Please exercise due discretion and consult a licensed professional.
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Why Do I Need Life Insurance?
Life insurance is a financial safety net in case the unexpected happens. Whether you choose a term or whole life insurance, these plans are designed to protect your family’s financial stability in the event of death, total permanent disability (TPD), or terminal illness.
Financial stability
Imagine you’re the primary breadwinner in a household with a mortgage, children, and elderly parents relying on your income. What happens if you're no longer there to provide? Life insurance ensures that your family isn't left financially vulnerable. For instance, if you pass on unexpectedly, your life insurance provider provides a lump sum payout (e.g. $250,000) to financially cushion and support your loved ones while they adjust.
Sum assured
The sum assured is the guaranteed base amount your life insurance plan will pay out to your beneficiaries upon your death. This amount is not arbitrary—it's something to carefully decide since it’s fixed at policy purchase. Primarily, it should be enough to cover your family’s immediate needs such as living expenses, childcare, or mortgage payments for at least a year or until they can regain financial stability. This ensures that your loved ones don’t face the added stress of financial uncertainty while mourning your loss.
Death benefit
Not to be confused with the sum assured, the death benefit is the total payout amount your beneficiaries will receive upon your death or TPD. It comprises the sum assured, any non-guaranteed bonuses (like reversionary and/or terminal bonuses in participating policies), and optional riders (if any).
For example, imagine your policy has a $200,000 sum assured, along with a $40,000 reversionary bonus and $20,000 terminal bonus—this brings your total death benefit to $260,000 once claimed. Examples of participating whole life insurance plans include AIA Guaranteed Protect Plus II and DIRECT – GREAT Life II.
For example, imagine your policy has a $200,000 sum assured, along with a $40,000 reversionary bonus and $20,000 terminal bonus—this brings your total death benefit to $260,000 once claimed. Examples of participating whole life insurance plans include AIA Guaranteed Protect Plus II and DIRECT – GREAT Life II.
When is the Right Time to Get Life Insurance?
The earlier, the better.
Life insurance premiums are lower when you're younger and healthier, allowing you to lock in more coverage for less since you're less likely to have pre-existing health complications. If you’re in your 20s or early 30s, now’s the perfect time to start thinking about your life insurance options.
While life insurance may not be an exciting dinner conversation, it’s essential for future planning. Whether you're purchasing a short term endowment plan, a single premium endowment plan, or securing long-term coverage, having life insurance ensures that your family’s financial security is protected no matter what life throws your way.
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What Are The 3 Types Of Life Insurance?
Whole Life Insurance
Benefit
Offers you a lump-sum payout in the event of disability, terminal illness, critical illness (depends on your choice of plan), and death, with possible cash returns – for your entire life.
Who is it for?
Young adults, professionals, and homeowners
Offers you a lump-sum payout in the event of disability, terminal illness, critical illness (depends on your choice of plan), and death, with possible cash returns – for your entire life.
Who is it for?
Young adults, professionals, and homeowners
Term Life Insurance
Benefit
Offers you and your family a lump-sum payout in case you are disabled, terminally ill, critically ill (optional), or in the event of your death – up to a certain age only, e.g. 75 years old.
Who is it for?
Fresh graduates, first-time insurance buyers, and first-jobbers
Offers you and your family a lump-sum payout in case you are disabled, terminally ill, critically ill (optional), or in the event of your death – up to a certain age only, e.g. 75 years old.
Who is it for?
Fresh graduates, first-time insurance buyers, and first-jobbers
Universal Life Insurance
Benefit
Often offered to high net-worth individuals, a Universal Life insurance plan offers you the usual whole life death benefits – although with the flexibility to change your sum assured and premiums anytime, and the premiums you pay can be investment-linked.
Who is it for?
High and ultra-high net-worth individuals considering legacy planning
Often offered to high net-worth individuals, a Universal Life insurance plan offers you the usual whole life death benefits – although with the flexibility to change your sum assured and premiums anytime, and the premiums you pay can be investment-linked.
Who is it for?
High and ultra-high net-worth individuals considering legacy planning
Whole Life Insurance vs Term Insurance
When it comes to life insurance, term and whole life insurance are two of the most popular options. Read our guide on which type of life insurance is best for you if you want to know more. But for now, what’s the difference between them, and how do you choose the best one for your needs? Let’s break down the key differences:
Term insurance
Getting term insurance offers coverage for a fixed period—typically until you're 75 years old. If you pass on, are diagnosed with terminal illness, or become permanently disabled during the term, your family will receive the lump sum payout. However, if you outlive your policy, you won’t get any of your premiums back, and the coverage ends. This is due to term insurance offering pure protection without cash value, unlike whole life or endowment plans.
Whole life insurance
On the other hand, whole life insurance provides lifelong coverage—often till the age of 99, 100, or even death depending on the insurer. While premiums tend to be significantly higher than term insurance, the benefits are more comprehensive. In addition to lifelong protection, whole life policies accumulate cash value over time, which can be borrowed against or withdrawn (subject to conditions). For added protection, they can also be customised with optional riders (e.g. critical illness or premium waivers) and multipliers for boosted coverage throughout key life stages.
Naturally, whole life insurance’s higher premiums reflect its long-term value, flexibility, cash value accumulation, and lifelong coverage, making it ideal for those seeking lasting financial security and legacy planning.
Choosing between term insurance and whole life insurance depends on your goals and budget. For affordable coverage over a shorter fixed period, go for term insurance. In contrast, for lifelong protection and accumulating cash value, whole life insurance could be a better fit albeit the higher premiums.
Naturally, whole life insurance’s higher premiums reflect its long-term value, flexibility, cash value accumulation, and lifelong coverage, making it ideal for those seeking lasting financial security and legacy planning.
| Feature | Term Insurance | Whole Life Insurance |
|---|---|---|
| Coverage Period | Fixed period (e.g. 10, 20, 30 years or until age 75) | Lifetime coverage (e.g. until age 99 or death) |
| Premiums | Generally much cheaper | Significantly more expensive |
| Cash Value | No cash value, only death benefit | Builds cash value over time |
| Payout | Lump sum if death occurs within the term | Lump sum and potential dividends with long-term cash returns |
| Flexibility | Limited flexibility—coverage ends when the term ends | Flexible options to add coverage or modify plan |
| Best For | Affordable and temporary coverage | Lifelong coverage with an investment component |
Table 1: Comparison between term insurance and Whole Life Insurance
Choosing between term insurance and whole life insurance depends on your goals and budget. For affordable coverage over a shorter fixed period, go for term insurance. In contrast, for lifelong protection and accumulating cash value, whole life insurance could be a better fit albeit the higher premiums.
Is Whole Life Insurance a Good Investment?
While whole life insurance offers lifelong protection alongside potential bonuses and optional riders, is it really a good investment? While some swear by it, others prefer the lower premiums of term insurance. To help you decide, let's explore the key advantages and disadvantages of whole life insurance.
Pros ✅
Lifelong coverage
In Singapore, the average life expectancy is 83.5 years (as of 2025). However, most term policies only cover you until you turn 75. This means if you outlive your term insurance plan, your coverage ends with no payout. On the other hand, whole life insurance covers you for your entire lifetime — up to age 99, 100, or even death — ensuring your family is always financially protected no matter how long you live.Cash value & returns
Unlike term insurance which offers no returns or additional riders, whole life insurance can build cash value over time. Whole life plans provide a guaranteed cash return and non-guaranteed returns based on investment performance of the participating fund. Therefore, with a whole life plan, you can use its accumulated cash value as a financial asset to borrow against or re-funnel back to offset future premiums.For those seeking savings-focused protection, endowment plans are a viable alternative to consider. These plans accumulate value over time and can offer both guaranteed and non-guaranteed benefits. Common types of non-guaranteed bonuses include reversionary bonus, terminal bonus, cash dividends, and accumulation bonus.
Non-guaranteed bonuses may be revised downwards depending on the participating plan’s fund performance. Thus, an endowment plan’s cash value may be equal to or lower than the sum assured.
Investment-linked options
Some whole life insurance policies are linked to investment funds. This means that your monthly premiums are pumped into your choice of investments. This offers potential for higher returns, but also carries market risk. You could benefit from market growth, but you could also lose money if the market performs poorly. It’s a higher-risk, higher-reward option that’s only recommended for those comfortable with investment volatility.Cons ❌
High premiums
One of the major drawbacks of whole life insurance is its cost. Premiums are generally 10 to 12 times higher than those for term policies. For example, if you're in your late 20s, expect to pay around $4,000 per year for just $250,000 in coverage. This can be a significant financial commitment especially if you're still building your savings or have other financial priorities.Not always necessary
Some may argue that whole life insurance may not be essential once your children become financially independent. Continuing to pay whole life premiums into your retirement years especially when your dependents are self-sufficient, can feel unnecessary. In such cases, perhaps opting for a term insurance or relying on personal savings may be a more sensible choice.Risk of losing money
If you’ve opted for a whole life investment-linked policy (ILP), you’re exposing yourself to market risk. If you're not familiar with fund choices or lack proper guidance, you could end up losing part of your premiums. Keep in mind, ILPs are designed for long-term investment, so early withdrawals—such as for a home mortgage or education costs—may incur penalties or losses, making them unsuitable for short-term liquidity.Complexity and long-term commitment
Another downside of whole life insurance is the long-term commitment it requires. With term insurance, you know exactly what you’re paying for—just a straightforward coverage for a fixed number of years. But whole life insurance policies are more complex and often entails various riders, investment components, and cash value accumulation. If you're not prepared to monitor your policy or adjust it as your financial situation changes, it might feel like more of a burden than an investment.Life Insurance Plans to Consider in Singapore
- Min. Death and TI Coverage
- S$50,000
- Critical Illness Coverage
- Add on
- TPD Payout Limit
- S$7,500,000
- Monthly Premium
- S$205.58
The AIA Guaranteed Protect Plus (IV) is a whole life insurance plan offering coverage for death, TPD (up to age 70), and CI (optional, up to age 100). You can add a 2X, 3X, or 5X multiplier (up to age 65 or 75) to increase your lump-sum payout with premium payments over 15, 20, or 25 years. Besides its accumulated cash value, the plan also offers non-guaranteed bonuses based on the participating fund’s performance. Plus, you can even flexibly encash 50% or 100% of your coverage amount for its cash value and receive annual cash payouts for 10 years to fund your retirement if you so desire. Throw in a Critical Protector Life (IV) or Early Critical Protector Life (IV) add-on along with their respective premium waivers to enhance your protection against CI.
- Min. Death and TI Coverage
- S$25,000
- Critical Illness Coverage
- Add on
- TPD Payout Limit
- S$5,000,000
- Monthly Premium
- S$180.75
Manulife LifeReady Plus II is a whole life insurance plan offering coverage for death, terminal illness, and TPD up to age 99. Additionally, it lets you enhance your coverage up to 5X until age 70 or 80. Healthy individuals can enjoy premium discounts through Manulife’s Health Advantage Benefit for the first 2 years. After that, you can continue receiving discounts if you maintain specific health targets. Premiums are higher due to the health benefits and enhanced coverage.
Singlife Whole Life Choice is a whole life insurance plan that provides lifelong coverage for death and terminal illness. It combines a participating Base Cover which accumulates guaranteed and non-guaranteed cash value from the third policy year with a non-participating Additional Cover. The Additional Cover offers a multiplier of 100%, 200%, 300%, or 400% of the Base Sum Assured and is applicable until the policyholder reaches age 65, 70, 75, 80, or 85 depending on the chosen coverage age. The plan also includes options for supplementary riders such as the Total and Permanent Disability Advance Cover V, Critical Illness Advance Cover VI, and Early Critical Illness Advance Cover VI to enhance protection.
Income Complete Life Secure is a whole life insurance plan offering comprehensive coverage for death, TPD, and terminal illness. Policyholders can enhance their coverage with a Multiplier Cover which provides up to 500% of the sum assured and is applicable before the policyholder reaches age 65, 75, or 80 depending on the selected multiplier. The plan also includes a non-participating regular premium compulsory rider—Complete Life Secure – Protection Benefit which pays retrenchment benefit and part of the multiplier cover. Additionally, the Early Critical Secure Rider is also offered if you wish to supplement your protection with extra coverage for major cancer, heart attack of specified severity, and stroke with permanent neurological deficit (even if an early or intermediate stage dread disease has already been claimed).
How to Apply For a Life Insurance Plan through MoneySmart?
Step 1
Answer these questions
If you find downloading insurance policy brochures and comparing them side by side a hassle, click on the "Apply Now" or "Get a Quote" button of your preferred insurance plan and fill up our form for us to get in contact with you.
Step 2
Speak to our insurance specialists
After you submit your profile, our team of MDRT-certified insurance specialists will drop you a call to clarify your needs and explain your options to you. Seize this chance to ask our friendly colleagues the burning questions you may have about life insurance!
Step 3
Apply and purchase your life insurance policy
Once you have spoken to our insurance advisors, considered your options, and planned your finances, voila!
You are ready to apply for your life insurance plan online through our portal.
Which Insurance Plan Suits You Best? Ask Edwin Ooi, Our MDRT-Certified Specialist
“My focus is to always provide advice through a “needs-based” approach, and help clients integrate their insurance plans with their overall financial planning.”
– Edwin Ooi (Senior Financial Advisory Specialist)
From health insurance to life and term insurance coverage, building your insurance portfolio early is one of the smartest financial moves you can make while young. MoneySmart's MDRT-certified experts are here to guide you with plan comparisons, eligibility advice, and seamless end-to-end support so you can protect your future with confidence.
– Edwin Ooi (Senior Financial Advisory Specialist)
From health insurance to life and term insurance coverage, building your insurance portfolio early is one of the smartest financial moves you can make while young. MoneySmart's MDRT-certified experts are here to guide you with plan comparisons, eligibility advice, and seamless end-to-end support so you can protect your future with confidence.
💡 Did you know? The Million Dollar Round Table founded in 1927 serves as an international association uniting various financial professionals, including life insurance agents, financial advisors, and wealth managers? The MDRT recognition is regarded as a mark of distinction, with specific benchmarks for excellence.
Frequently Asked Questions
What is life insurance?
- Life insurance provides a lump-sum payout to your loved ones if you pass away. This helps cover expenses like funeral costs, home loans, medical bills, education fees, and any other costs—ensuring your family can tide through this difficult time without financial hardship.
That said, the coverage amount differs based on the individual—some may need $500,000 to support dependents, while others may only need $100,000 for basic expenses. Can life insurance be transferred to another company?
- No, life insurance policies cannot be transferred between companies. The policy is a legal contract between you and your insurer and once signed, you’re bound by the terms. Changing providers requires cancelling your current plan and starting a new one with another insurer.
Does life insurance pay if you die of cancer?
- Yes, life insurance will pay out if you die from cancer, provided your policy covers natural causes. Be sure to disclose any pre-existing conditions, including cancer. If diagnosed with terminal cancer, check if your policy includes terminal illness benefits or a CI rider. In some cases, this may allow for an earlier payout.
How does age affect life insurance?
- Age impacts your life insurance premiums. The older you are, the higher your premiums. This is due to an increased risk of illnesses and medical conditions. Younger applicants usually have fewer health issues and lower premiums, making it more cost-effective to buy insurance at a younger age.
Should I buy life insurance for my child?
- Whether to buy life insurance for your child depends on your priorities and financial goals. Some argue it's unnecessary since children don't have dependents or financial responsibilities. Others believe it provides security in case of illness or accidents and ensures future insurability for the child.
Should I get term or whole life insurance?
- Whether to choose term or whole life insurance depends on your priorities. Whole life insurance offers lifelong coverage but comes with higher premiums. Term insurance is cheaper and covers you for a set period (until age 75 for instance). Whole life plans typically cost 10 times more than term plans.
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